A beta value of 0.5 for a security indicates:

A) the security has average systematic risk.
B) the security has above-average systematic risk.
C) the security has no unsystematic risk.
D) the security has below-average systematic risk.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

Beta Value

A measure of a stock's volatility in relation to the overall market, indicating the level of risk associated with the stock.

Unsystematic Risk

The risk associated with a specific company or industry, also known as non-systemic risk, which can be mitigated through diversification.